Pre-Approval FAQ
Pre-Approval FAQ
Navigating the pre-approval process doesn’t have to be overwhelming. Here are answers to some of the most common questions to help you feel confident and informed every step of the way.
- What is pre-approval, and why is it important?
- Pre-approval is a lender’s assessment of your financial situation, determining how much you can afford to borrow for a home. It gives you a competitive edge, helps set your budget, and shows sellers you’re a serious buyer.
- How long does the pre-approval process take?
- The process is typically quick—most borrowers can complete an application and submit documents within 20 minutes, with pre-approval issued within 24–48 hours, depending on your financial situation.
- Does pre-approval affect my credit score?
- Not necessarily. In most circumstances we can work with a soft credit pull which has no impact on credit score. A hard credit pull will be required once under contract.
- How long is a pre-approval letter valid?
- Most pre-approval letters are valid for 120 days. If your letter expires, we can update it with minimal effort as long as your financial situation hasn’t changed.
- What documents do I need for pre-approval?
- Typically, you’ll need pay stubs, W2s, bank statements, and a photo ID. Depending on your situation, additional documents, such as tax returns or proof of other income, may be required.
- Can I get pre-approved if I’m self-employed?
- Yes! Self-employed borrowers may need to provide additional documents, such as tax returns, profit-and-loss statements, or business bank statements, to verify income.
- Can my pre-approval amount change?
- Yes, your pre-approval amount can change if your financial situation changes (e.g., taking on new debt or income fluctuations) or if interest rates rise. Keeping your finances stable is key.
- Is pre-approval the same as pre-qualification?
- No. Pre-qualification is a preliminary estimate based on self-reported information, while pre-approval involves a detailed review of your financial profile and is more reliable.
- Can I make offers on a home without pre-approval?
- While technically possible, most sellers won’t take your offer seriously without a pre-approval letter. It’s a crucial step to demonstrate you’re a qualified buyer.
- What happens after I’m pre-approved?
- Once pre-approved, you’ll receive a letter specifying your budget. From there, you can confidently shop for homes, make offers, and work with your loan officer to finalize your mortgage.
Exhale Lending is a mortgage brokerage firm that embodies trust, transparency, and a genuine desire to help clients achieve financial serenity. With our client-centric approach, expertise, and unwavering commitment to excellence, Exhale Lending is poised to make a meaningful impact on the journey towards homeownership for individuals and families alike.
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Exhale Lending, L.L.C.
NMLS 2493601
Equal Housing Opportunity
Equal Housing Opportunity
Office Location
1135 Kildaire Farm Road, Suite 200
Cary, NC 27511
Cary, NC 27511